LG 2003 Annual Report Download - page 95

Download and view the complete annual report

Please find page 95 of the 2003 LG annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

LG Electronics Inc._Annual Report 2003 95
Notes to Non-Consolidated Financial Statements
For the years ended December 31, 2003 and 2002
2003 2002
Effect of change in tax rate 15,429 -
Others (25,123) 1,416
Actual taxes ￦173,976 ￦121,397
Effective tax rate 20.79% 30.41%
The reconciliation from income before income taxes to taxable income for the year ended December 31, 2003
and the nine-month period from April 1, 2002 (spin-off date) to December 31, 2002 are as follows:
(in millions of Won)
2003 2002
Income before income taxes ￦836,800 ￦399,113
Temporary differences:
Allowance for doubtful accounts (80,514) 30,937
Reserve for research and manpower development - 80,250
Amortization of intangible assets 53,122 49,725
Gain on valuation of securities using the equity method, net (448,201) (26,666)
Depreciation 29,483 -
Accrued income (32,790) (24,115)
Deferred income tax for investment securities 302,506 -
Others 58,664 49,119
719,070 558,363
Permanent differences 32,307 32,580
Taxable income ￦751,377 ￦590,943
The income tax effect of temporary differences comprising the deferred income tax assets as of December 31,
2003 and 2002 are as follows:
(in millions of Won)
2003 2002
Depreciation ￦1,499 ￦462
Allowance for doubtful accounts 37,829 61,771
Reserve for research and manpower development - (62,489)
Deferred income tax for investment securities - (89,815)
Product warranty 23,095 23,522
Amortization of intangible assets (21,470) (38,055)
Loss on valuation of securities using the equity method, net 169,227 318,492
Others 39,548 24,017
Deferred income tax assets ￦249,728 ￦237,905